Los Angeles is home to plenty of distressed homes, opening a treasure trove of opportunities for savvy homebuyers and real estate investors.
Distressed properties can come in the form of:
In this post, we’ll differentiate the types of distressed properties and walk you through the basics of buying them. (more…)
We at Nordine have an extensive real estate owned (REO) inventory.
REO foreclosures don’t necessarily mean that the property is a bad investment. On the contrary, such foreclosures provide a unique opportunity for buyers and investors.
In general, real estate owned foreclosures are priced below market value—making them attractive to bargain hunters, buyers on a budget, and investors.
Here are 3 more advantages of buying an REO home:
Buyer beware (more…)
Home selling can be a stressful experience, especially if you aren’t quite sure what you’re doing.
Hiring a listing agent is one of the best decisions you’ll make if you’re unfamiliar with the home-selling landscape.
But, hold on—don’t just hire any listing agent because everyone will claim to be the best in the area.
Rather, look for the qualities listed below to help you make your choice:
Then, ask your questions. For example:
In addition, Realtor.com suggests that home sellers ask the following questions:
Choose a Realtor thoughtfully. Remember, the listing agent you hire will help pave the way for a successful real estate transaction.
For more information on home selling and other related queries, give Nordine Realtors a call at 310-379-8800.
Today, every piece of information you need is online.
It’s made life so much easier especially for property buyers. Searching for homes by size, price, and location alone can instantly yield a dozen choices.
As a home seller, you want your property to appear in the upper reaches of those search results—for maximum visibility and the likeliest clickability.
How?
By creating a website dedicated to a single property. Yes, just one.
Not your real estate inventory, if you happen to be in the business. Not even for 2 or 3 related properties.
To ensure online visibility and up the chances of selling your home faster, you have to keep your website focused on the sole property you are trying to sell.
Everything that a website needs—photos, links, and detailed information—will force you to show your property at its best—or else spruce it up in a hurry.
Your website should help a buyer see your property without being physically present at the location.
The advantages are pretty clear:
Best of all, having a single-property website expands your connections by simply being up online.
With the social boom, you can pass on the website address or URL and have friends and family share the information—instantaneously spreading the word about the property you’re selling
Zero cost, unlike newspaper ads that run for only a day, or posters and flyers you would have to reproduce and physically distribute
There’s more.
If you use quality property site building tools, you can get free listing syndication. This means your site will be automatically submitted to various real estate portals such as Yahoo Real Estate, Realtor, and Google Base.
So, when someone looks up a home for sale in your area, your property will be among the top search results.
Single-property websites can do wonders for you. Give it a spin to measure just how effective it is.
For more information on home selling and other related queries, give Nordine Realtors a call at 310-379-8800.
We have reached a time and age when the Internet has become the most reliable and convenient source of information that we have.
From modern dating tips to everyday recipes, we rely on the Web to guide us every step of the way.
The Internet has truly helped many companies develop and evolve. It’s cheap, fast, ubiquitous. It has the ability to reach customers in every part of the globe.
If you want to know the best ways to advertise your commercial property online, here are some helpful tips:
Create a website that functions as your showroom with a facility that allows visitors and prospective buyers to ask you questions and leave their feedback.
Keep your social media accounts active. If you’re on Facebook, LinkedIn, Instagram, Pinterest, Twitter, etc., make sure you’re consistently posting updates or photos about your property. It boosts your ratings and makes your page more visible.
You can also post related links – for instance, trends in office space, events happening in your commercial park or city, local tourist attractions and other places that make the neighborhood interesting, etc.
The more you post engaging material, the more you’ll get followers and potential buyers.
With email, you can take the first step in selling your commercial property.
You can create your very own database of clients and brokers, and keep in touch with them through their online accounts.
Include photos of homes, features, and updates in your email alerts.
Highlight the positives of your property – spacious parking lot, proximity to public conveniences, high-traffic area, etc.
Proofread your email. A typo or grammatical error always looks unprofessional.
What you really need to do then is to reach out to potential clients by advertising advertise your property.
These online campaigns don’t necessarily have to be brilliant; they just need to accomplish what they set out to do.
Selling commercial real estate in Los Angeles is a process of following rules and meeting requirements set by the city’s Department of Building and Safety.
It’s a step that can be circuitous and daunting. Here are a few things to help you out.
The following is not explicitly required by the local government, but you would do well to have the following disclosures ready.
Here are other things that are good to know when selling commercial real estate.
For more information on selling commercial properties, give NordineCommercial a call at 310-379-8800.
Mixed-use facilities don’t go out of favor because of what they provide the individual: residential, commercial, cultural, institutional, and industrial functions rolled into one, where the individual can live, work, and play without crossing the street or driving a car.
If you’re selling a mixed-use development in Los Angeles, make sure you meet the following Requirements
For mixed-use facilities with residential spaces:
Interior lighting, on the other hand, must be installed in common and service rooms as well as parking garages.
Doors and windows that provide entry to each dwelling must be installed with locks.
For mixed-use facilities with commercial spaces:
Because they’re a convenience to residents and tenants, mixed-use facilities often accommodate commercial spaces. To know more about requirements needed for both commercial and residential properties, check out our guide on selling commercial real estate.
When you hire an experienced professional real estate agent to sell your mixed-use property, you increase your chance of landing a profitable sale.
Getting a real estate lawyer to advise you on the arcane legalities of selling commercial real estate ensures you comply with every requirement the transaction entails.
Knowing what to do at the outset instead of figuring it out yourself speeds up the selling process.
To know more about selling mixed-use properties, give Nordine Commercial a call at 310-379-8800 and we’ll be happy to answer your questions.
The performance of a commercial property on the real estate market depends on many factors.
Every single step—from planning to construction/renovation and to occupancy—affects how the property is eventually received.
You can have a perfectly structured office space and still end up with few takers.
A few tips, then, on how to attract tenants:
ONLINE: Make sure that your online listing is prodigiously linked and highly discoverable. Promote your project in blogs and press releases.
With constant updates and informative posts, you can increase the exposure and desirability of your office space and keep buyers and renters hooked.
Here are a few ideas:
Promote the neighborhood your development is in and the way of life of the people who live there.
In case vacancies arise, hire from within the immediate community if you are able.
If you’re thinking of investing in industrial real estate, check out the following markets as suggested to the National Real Estate Investors by Colliers International’s national director of the U.S. Industrial Group, Dwight Hotchkiss, to get an insight of where you’ll maximize earnings.
If you’re living in Washington and you’re inclined to invest in industrial real estate, drop by Seattle, one of the fastest growing markets for industrial facilities. The vacancy rate in the Seattle/Puget Sound alone is impressive, at it has dropped 30 basis points in the first quarter of this year.
What D. Hotchkiss has to say: “Seattle has become a growing market that has seen greater interest in new development and investment from institutional clients.”
There’s more to life than luxury condos and waterfront estates in South Florida. The industrial vacancy rate in this region is doing quite well. Take Miami, for example, with vacancy rates crashing down 30 basis points from the end of 2014 to the first quarter of this year. West Palm Beach, on the other hand, has a 5.9 percent vacancy rate.
What D. Hotchkiss has to say: “A number of notable investments have occurred in this region as a result of the explosion of business with LATAM.”
San Francisco Peninsula’s vacancy rate will wow industrial real estate investors: it’s now only at 2.5 percent since it dropped 50 basis points in the last quarter of 2014. The same happened in San Jose, with a vacancy rate of 6.8 percent.
What D. Hotchkiss has to say: “The Central Valley, in particular, has become an area to watch… The region has seen a great increase in user interest and institutional investment.”
Chi-town has always been a market to check out for institutional investments. Vacancy rate in the city averaged at 7.6 percent in the first quarter of this year, which represents a 10-basis point drop from the last quarter of 2014.
What D. Hotchkiss has to say: “Chicago continues to be a noteworthy market as it’s a key logistics center in the U.S. for trains coming from West Coast.”
For more information on the best markets for industrial real estate, log on to http://nreionline.com/industrial/8-best-markets-industrial-real-estate#slide-0-field_images-1785001.
Gone are the days of using traditional cubicles in the workplace – they’re boring, outdated, and don’t respond to the new way we work.
If companies want to bag the brightest hires, they’ll need to have a collaborative office space that can accommodate flexible work styles.
As the workforce has become increasingly mobile, time spent working at a desk has been greatly reduced.
Working on the move has become the norm now, thanks to smart phones, tablets, lighter laptops, and 24/7 connectivity.
As a result, more companies are transforming their offices into more efficient workspaces that feature flowing, open floor plans that allow employees to move around and collaborate with ease.
Some companies, on the other hand, have adopted new work arrangements such as desk sharing, flexible work hours, and telecommuting.
With the change in how people today work, office experts are ushering in a new era in office design.
Floor layouts and furniture design are being re-imagined to support a variety of work styles.
These changes adapt to an individual’s working style but also influence attitudes and cooperation among employees.
In a survey conducted by trusted firm Jones Lang LaSalle (JLL) on 544 real estate firms, almost 70 % percent of respondents have seen an increased demand on workplace design that foster employee collaboration.
The best example of this is Facebook CEO Mark Zuckerberg, who does not have an office but sits beside his employees with whom he shares a long desk.
“People are actually happier to work this way, they like the freedom,” says Elie Finegold, senior vice president of global innovation and business intelligence at CBRE Group.
“It’s like the years before offices, like farmers who worked at their own pace and quit when it was done, not at a time-clock, and it lets them be with their families more,” she added in an interview with National Real Estate Investor.
“Plus, every communication is more traceable, so you know the work is getting done.”
The emergence of millennials, or those born between 1980 and the mid-2000s, has also had a profound effect on office design.
According to Bernice Boucher, head of workplace strategy in the Americas for JLL, millennials demand work flexibility, and company managers are remodeling office environments to allow freedom of movement and access to the latest technology.
Bouchard also states that some companies like to think they’re competing against Google, a company that’s the holy grail of tech-immersed new talent. Managers hope that by adopting new workplace designs, they’ll also gain a reputation as a company job seekers should check out.
The world of real estate is full to overflowing with acronyms, jargon, and insider terms.
If you’re looking to test your knowledge or learn something new, we compiled a list of some of the most common terms used by commercial real estate brokers.
This guide is also best shared with interns, junior associates, or anyone new to the business of commercial real estate.
LTV – “Loan to Value” is the ratio of mortgage loan to property value.
Operating Expenses – The total expenses incurred during a commercial property’s operation. These typically include property taxes and insurance, cost of utilities, and maintenance costs.
BOE – This stands for “Back of Envelope,” a time-saving method used by investors to analyze investment opportunities. The BOE concludes whether or not a possible real estate investment makes the cut, before more time is further spent analyzing the investment.
CAM – Or “Common Area Maintenance” refers to expenses that cover maintenance fees such as cleaning, landscaping, snow removal, and the like.
Trophy Building – The best type of investment property. Trophy buildings are first class in every respect from the architecture , location, technology, finishes, environmental sustainability, to other factors.
FAR – “Floor Area Ratio” is the ratio between the total size of the property and the size of a structure or building that can be constructed within the property. This ratio is determined by officials from the local municipality according to zoning regulations in the neighborhood, district, town, or city.
Zoning – This is the term used for the laws regarding the legal use of land or real estate in an area. These laws determine which type of properties can be developed within certain areas, whether it’s a commercial, industrial, or residential property. Zoning laws also determine specific restrictions and guidelines such as height, required parking, and FAR (see above).
Lessee – The lessee is the property’s tenant, or the party currently occupying a leased space and paying its rent.
Lessor – This is another term for landlord. This is the party that collects the rent and allows the lessee to occupy and use the leased space.
Sublease and Direct Lease – A direct lease is a negotiation between a tenant (or lessee) and a landlord (or lessor). A sublease on the other hand, is an arrangement between two tenants leasing the same space.
Sublessee and Sublessor – These are the two parties involved in a sublease. The tenant that has an active lease on a space is a sublessor, while the one leasing the space from the other is a sublessee. A sublessor can decide whether to lease out the entire area or one portion of the space.
Availability Rate – This is the quantity of office space that may be leased. This includes vacant space, space that is available within the next quarter, and available space for sublease.
Absorption – This is the amount of leasable square footage within a given period of time. Total absorption or gross absorption is the total amount of square footage that does not include the space vacated during the same period. Net absorption takes both figures into account, and can be calculated by subtracting the amount of occupied square footage during the start of a time period from the square footage occupied during the end of the same period.
Vacancy Rate – This is a percentage of all the available units in a city’s entire market, submarket, property, or portfolio within a given period of time.
Landlord Representative – Also known as an LL Rep is hired by landlords to stand in their stead during leasing transactions. Talented LL reps are able to negotiate for low vacancy rates and high rents, and often enjoy a consistent flow of repeat business from the many satisfied landlords they represent.
Tenant Representative – On the other hand, tenant reps are brokers hired by those seeking out store or office space, in single or multiple locations, including globally. Tenant reps ensure the client’s best interests are represented during negotiations. They can also be in charge of finding the space and location that perfectly suits a tenant’s needs.
Rentable Area – This is the total square footage a tenant pays for. This includes hallways, lobbies, and other common areas. The rentable area, however, does not include elevators and stairs.
Usable Area – This area is the leased space used by the tenant. This includes recessed entrances, columns, and other necessary fixtures, even though tenants cannot physically make use of these.
Assignable or Carpetable Area – This is the actual area that may be physically used by a tenant, the total space that does not include columns or other similar obstructions. It’s space you can actually place a carpet on, hence the term “carpetable.”
Loss Factor – The percentage of a Rentable Area that a tenant cannot make use of.
Load Factor or Add-on Factor –A percentage that indicates how much larger a Rentable Area is compared to the Usable Area.
Full Service or Gross Lease – With this, a landlord usually covers all operating expenses, though there are certain cases wherein tenants are responsible for covering a partial amount of annual increases in operating expenses.
Modified Gross Lease – A Modified Gross Lease means a tenant covers a portion of operating expenses along with the base rent. This amount typically includes utility bills and maintenance or janitorial services.
Triple Net or NNN Lease – This type of lease means a tenant is responsible for three kinds of operating expenses: property tax, insurance, and maintenance. Landlords with this type of lease collect a net amount, since they are free from paying for operating expenses.
Double Net or NN Lease – This is the same as the Triple Net Lease, except landlords are responsible for covering maintenance expenses.
Not a real estate expert?
No worries.
For the majority who wish to know more about the ins and outs of commercial properties, here are the answers to some of your FAQs.
1. What counts as a commercial property?
In the simplest sense, commercial properties are for-profit sites. Typical commercial properties are office buildings, retail shops, multifamily housing, and warehouses. Hotels, sports facilities, and hospitals are also counted as commercial properties. Like any business, the cash flow of commercial properties depends mostly on timing, market conditions, and current tenants.
2. How is dealing with a home different with a commercial space?
There are many similarities between commercial and residential deals. However, commercial real estate entails more risks. Buyers, sellers, and renters of commercial spaces are more susceptible to issues regarding titles and liens. There are also zoning problems that may eventually arise.
3. What are the possible risks when it comes to selling commercial real estate?
All investments come with unpredictable circumstances. As much as we would like to anticipate all contingencies, there are certain things we can’t really control. When it comes to commercial spaces, however, it pays to pay attention to the following issues:
Not everyone involved in commercial real estate experiences these drawbacks but one must always be ready for sticky situations.
4. Is a real estate broker or lawyer really necessary when it comes to commercial real estate transactions?
A broker’s job is to negotiate and arrange deals for clients – but not provide legal advice to buyer or seller. Hiring both a broker and a lawyer to help you deal with the complications of handling and negotiating real estate steers you clear of possible misunderstandings or legal entanglements.
Phone: 310.379.8800
Phone: 310.379.8800
